The National
President of the Ghana National Chamber of Commerce and Industry (GNCCI), Mr
Clement Osei-Amoako has appealed to Ghanaians and businessmen to desist from
buying the dollar and hoarding them, as he lamented that the practice was
hurting the economy.
He explained that the buying of the United States dollar and other foreign
currencies due to the depreciation of the cedi without any importation business
has led to shortage of foreign currencies in the economy. This, he
said has created panic in the economy and contributed to the high
inflation rates being experienced among other things.
“We are appealing with those who have excess foreign currencies and do have
businesses which require importation to invest them into the economy or buy
property such as lands which do not depreciate. We hold the dollar in Ghana for
import. When we do that, in effect, it makes goods our import cheaper. We
should not create panic in the system; panic creates problems in the economy,”
he said.
The President of GNCCI was speaking at the GNCCI capacity building workshop for
members of the chamber and other businessmen in the Eastern Region last
Wednesday (August 31, 2022) in Koforidua. The programme was themed;
“Empowering Small and Medium Enterprises with the Requisite Business Skills for
Sustainable Growth and Resilience”.
Industrialisation
Mr Osei-Amoako also urged government to industrialise the economy to reduce the
excessive importation of goods as excessive imports have weakened the cedi
in the face of major trading currencies. He advised for more export of goods to
strengthen the cedi.
“This is the time we have to look at our industrialisation drive and see areas
that we can export, that we have the competitive and comparative advantage to
make a lot of money. Currently, we have a situation where our manufacturing
sector is not doing well; so we do not have the capacity to export in order to
generate hard currencies to support the cedi. We are a net importer of goods
and service; meaning we import more than we export which is not good for the
economy, he said.
On government’s recent loan obtained, he said “the $750 million US dollar loan
from Afrexim Bank as well as what will come from the International Monetary
Fund (IMF) and the cocoa syndicated loans will help cushion the country with
the dollar issue and help with importation. However, he indicated that the
chamber will serve as a watchdog to the monies coming and make sure
government’s activities that will jeopardize the usage of these funds are
eliminated.
Accountability
The Chief Executive Officer of the GNCCI, Mr Mark Badu-Aboagye in an encounter
with the press indicated that there was the need for government to be held
accountable to provide the right environment for businesses to thrive.
He said that there has to be a coordination and a targeted approach between the
government, the chamber as well as the business community. He added that, the chamber
makes input every year into the budget statement of government to make sure
policies made served the interest of businesses.
Mr Badu Aboagye noted that “after the budget is read, we do analysis to see the
risk in it and how to mitigate it regarding businesses. Government cannot solve
this problem alone; it needs our support. It is the private sector that is
producing and also exporting; we have to do everything that will empower
businesses. Businesses are complaining about high inflation; it is creating
problems. To make the environment conducive for businesses, we make sure the
macroeconomic factors are conducive for businesses. The government must also
cut its expenditure; the more government is borrowing, the more it becomes
difficult for government to pay, if it does not invest the money borrowed into
the productive sector. If you borrow money and you spend, you will not be able
to pay and that will affect the cedi as well”.
On collaboration with Development Bank Ghana (DBG), he said about 70 percent of
the loans given by the commercial banks are short-term, and do not help
businesses. Hence, DBG has been partnered to offer members of the chamber
medium to long-term loans especially for those in the manufacturing sector.
Eastern Regional Chairman of GNCCI, Mr Stephen Oware appealed to business
owners in the Eastern Region to join its chapter in order to garner a stronger
voice and positively transform the image of businesses in the region to
promote development.
Source: Graphiconline